Payment of Minimum Wages

Under the provisions of the Minimum Wages Act, 1948 (M W Act) both the Central and State Governments are the appropriate Governments to fix and revise the minimum wages in the scheduled employments under their respective jurisdiction.

Rates fixed in the Central sphere are applicable to establishments under Central Government/CPSUs in various States including Delhi. A copy of the Minimum rates of wages applicable in different scheduled employments under Central Sphere w.e.f.1.4.2013 is enclosed(Annexure-I).

To compensate the effect of soaring prices, the concept of Variable Dearness Allowance (VDA) was introduced on the basis of recommendations of the Labour Ministers™ Conference held in 1988. Accordingly, VDA is revised periodically twice a year effective on April and October.

Workers under various Delhi Government institutions/corporations fall under the jurisdiction of Labour Department, NCT of Delhi. The Ministry of Labour and Employment has not received any complaint for non-payment of minimum wages, insurance facilities, health facilities etc. in Delhi Government.

The implementation of Minimum Wages Act (M W Act) is carried out by the Centre as well as the States in respect of their respective jurisdictions. In the Central Sphere, the enforcement is carried out through the inspecting officers of the Chief Labour Commissioner (Central) commonly designated as Central Industrial Relations Machinery (CIRM).The compliance in the State sphere is ensured through the State Enforcement Machinery. The inspecting officers conduct regular inspections and in the event of detection of any case of non-payment or under-payment of minimum wages, they advise the employers to make payment of the shortfall of wages. In case of non-compliance, penal provisions against the defaulting employers are invoked.

Section 12 under the Minimum Wages Act, 1948 prevents the employers from paying the employees any rate lesser than the prescribed minimum wage and also stipulates that the wages shall be without any deduction except as authorized.

This information was given by Minister of State for Labour & Employment Shri  Kodikunnil Suresh in the Lok  Sabha today in reply to a written question on the details of remuneration paid by the Union Government to the skilled/unskilled labourers in various States including Delhi presently at monthly/daily minimum wages basis keeping in view the soaring prices; whether workers under various Delhi Government institutions/ corporations are not being provided minimum wages, insurance facilities, health facilities etc.; the details of the mechanism put in place by the Government to check the proper payment of minimum wages in the states; and the directions given to companies/factories etc. to check the exploitation of labourers particularly with regard to payment of wages.

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ANNEXURE I